Policy experts have called for the complete overhaul of Nigeria's Bilateral Investment Treaties (BITs) to protect national interests, preserve human rights and dignity of labour, and align with sustainable development priorities. The call comes as the country reviews its investment governance framework to attract foreign direct investments.
Current BIT Regime Misaligned with Development Priorities
The policy experts argued that the current BIT regime has become misaligned with Nigeria's development priorities, exposing the country to significant fiscal and policy risks without delivering commensurate investment benefits. Speaking at a National Policy Dialogue on BITs in Abuja, the Country Director of ActionAid, Dr. Andrew Mamedu, emphasized the need for reform.
Dr. Mamedu, represented by the Head of Programs and Policy at ActionAid, Mr. Celestine Odo, noted that many existing treaties were negotiated under outdated conditions no longer suited to current realities. He pointed out that across Africa, there is increasing concern about outdated agreements and the Investor-State Dispute Settlement (ISDS) system, which prioritizes investor protections over national interests and shrinks decision-making spaces.
Extractive Sector Experiences Highlight Risks
Odo stated, "In Nigeria, experiences in the extractive sectors have shown that these agreements can expose the country to significant fiscal and financial risks. As such, questions arise about the prioritization of capital over national interest." He called on the government to take a more deliberate and informed approach to reforming its investment framework to support development, accountability, and sustainable growth.
Over 40 BITs Signed Since 1990
The Executive Director of Policy Alert, Mr. Tijah Bolton-Akpan, revealed that since signing the first BIT with the United Kingdom in 1990, Nigeria has entered into over 40 BITs, with about 31 currently in force. He noted that most existing BITs reflect an older generation of investment treaties that emphasize investor rights with limited consideration for public priorities such as environmental protection, public health, climate action, labor rights, and gender equality.
Akpan highlighted that evidence shows despite Nigeria's numerous investment treaties, the expected rise in sustainable and inclusive investment has not materialized. Instead, the country faces exposure to costly ISDS mechanisms that impose significant financial and policy risks. He said, "These agreements often prioritize investor protections without sufficiently balancing investor obligations with the developmental objectives of host countries."
Urgent Need for Reform
Akpan mentioned that with the intensifying campaign for fair and responsible investment, there is an urgent need to review and reform existing investment agreements to better align them with sustainable development, human rights protections, climate commitments, and domestic policy priorities.
